Using the company’s proprietary distributed-ledger technology, actuarial science and reinsurance protocols to diffuse credit default risk, fixed income dealers can structure new Rule 144A securities designed meet the investment, hedging and speculation needs of their institutional customers.

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Video Transcript:

DelphX Capital Markets, a technology and financial services company, has unveiled its new blockchain-powered Cloud-based platform for fixed income markets.

Using the company’s proprietary distributed-ledger technology, actuarial science and reinsurance protocols to diffuse credit default risk, fixed income dealers can structure new Rule 144A securities designed meet the investment, hedging and speculation needs of their institutional customers.

All securities originated on the platform will be collateralized by cash and investment grade debt securities which will be held in custody by an independent custodian.

Through the platform dealers can customize the terms of a new security, while concurrently negotiating its sale with potential purchasers, and make markets in all outstanding issues, without incurring capital costs or inventory limitations.

The new DelphX platform, which will be regulated by the SEC and operated by DelphX Services Corporation, a FINRA member firm, facilitates the origination and trading of:

• Covered Put Options (CPOs) that provide secured default protection for underlying corporate, municipal and sovereign securities, with each CPO strike-price equaling the par value of its underlying security; and

• Covered Reference Notes (CRNs) that enable credit investors to take on the default exposure of a single underlying security or optionally participate in a pool of diversified risks that broadly diffuses the impact of credit events.

Larry Fondren, Founder and CEO, stated: “Our system is the first and only source of pre-funded default protection and is designed to restore the ability of dealers to profitably provide cost-effective protection and robust credit liquidity – with no adverse balance sheet impact. It also enables dealers to structure new securities that can be exchanged with counterparties for outstanding CDS contracts – providing superior protection to customers and increasing the capital, inventory capacity and ROTE of dealers.”

All CPOs and CRNs will be transparently administered within DelphX’s immutable distributed ledger, with a traditional book-entry record of each security maintained in parallel by an independent issuing and paying agent providing additional transparency and efficiency.

The shares are trading at $0.40.

For more information, or to request a demo, please visit the company’s website www.delphx.com, contact Larry Fondren, Founder and CEO, at 610-640-7546 or email info@delphx.com.